Recently, I wrote about why banks don’t understand SaaS companies, so it’s fair to write and talk about why we do what we do, and what we at Corl look for.
We focus on a market under-served by mainstream finance: technology & knowledge-based startups in the early revenue stage with promising growth rates. From our perspective, building a compelling portfolio that generates a steady stream of monthly income offers a great investment opportunity for our investors. Simply put, Corl’s metric driven Revenue Financing system is the ultimate opportunity for accredited investors to align with innovative entrepreneurs.
So, what do we look for when financing a tech company? Well there are some basic criteria — at least $10,000 of consistent monthly recurring revenue, with gross margins of 30% or higher, which is usually not an issue for tech companies. We like to see a low customer churn rate, a long customer life time value, and subscription based revenue streams. Although we don’t require a business to be profitable, we do require a clear path to profitability with reasonable cash burn.
If you need capital to get out of a sticky situation and extend your runway, that’s a deal breaker. Our revenue based financing is best used for growth such as hiring sales personnel, marketing initiatives, product development, etc.
We founded Corl for one reason — making financing and investing in tech companies an intuitive process through an easy to understand investment method based on revenue. So, what else do we need from you? Let’s answer it by telling you what we don’t need:
- A long business plan. It’s a waste of everyone’s time.
- A personal guarantee. Unlike banks and alternative lenders, we’re investing in the business and its leadership, not the value of your personal assets.
- Audited financial statements. While this is a good idea, we don’t need them. Instead we request ready only access to your accounting system.
- A billion-dollar market opportunity. This is great if you plan to raise money through angel investors or VCs, but mostly we check if you have a real opportunity to grow once you secure our revenue based financing investment.
The beauty of revenue based financing is that it aligns the interests of entrepreneurs and investors. Like a VC our investors’ success depends entirely on your growth and success. The payments are based on your monthly revenue — the faster your company grows, the sooner we get our return on investment.
Unlike banks and alternative lenders, we know that early growth technology companies are great businesses and investment opportunities. At Corl we know that when the interests of entrepreneurs and investors are aligned, that’s when true growth begins. Request your early access today!